Government schemes to help you buy a home
There are a number of government schemes available to help you buy a home – but which could you be eligible for?
For some people, saving a deposit, securing a mortgage or finding the right home at the right price is such a struggle that they are priced out of buying on the open market. If you’re in this situation, it is worth looking into the Government schemes on offer to help you get on the property ladder.
Help to Buy and London Help to Buy
Through a Help to Buy equity loan, the government will lend you up to 20% of the value of a property in the form of an equity loan – or 40% if you’re in London. You’ll have to find a 5% deposit and secure a mortgage to cover the remaining share of the property.
What you should know about Help to Buy:
- It covers new build properties valued under £600,000 only
- It’s open to all potential and existing homeowners
- There’s no salary cap or joint income limit applied
- It will run until 2021
- Between April 2021 and March 2023, Help to Buy will only be available for first-time buyers and regional price caps will apply
Shared Ownership (New Build)
This shared ownership scheme allows you to buy part of a new build property and rent the other part. Over time you can buy more of the property, until you own the whole thing.
Shared Ownership (Resale)
The shared ownership resale scheme allows you to take over an existing shared ownership property that the current owner has put on the market. Over time you can buy more of the property until you own the whole thing.
Rent to Buy
You can rent a newly built home with the intention to buy, thanks to this government scheme
Right to Buy
If you live in a council house or flat you may be able to buy your home at a discount under the right to buy scheme. The discount depends on where you live, how long you have lived there and whether you live in a house or flat.
Armed Forces Home Ownership Scheme
The Armed Forces Home Ownership pilot scheme (AFHOS) has now closed, and the government recommends considering other schemes outlined above – such as Help to Buy.
HOLD or Home Ownership for people with Long term Disabilities
HOLD is a specially tailored option to assist people with long term disabilities to purchase a home on a shared ownership basis.
Schemes in Wales and Scotland
- The HOA Step-by-Step Guide to Buying a Home
- How to save for a deposit
- Can I afford to buy a home?
- What type of mortgage should I get?
- Help To Buy ISA vs Lifetime ISA
- How to make a successful mortgage application
- Top tips on buying a new build home
- Selling a home bought with a Help to Buy equity loan